Bitcoin and Ethereum continue their consolidations

Bitcoin chart analysis

The price of Bitcoin is still in bearish consolidation with a view to the lower trend line. Yesterday, the price dropped to $ 45,500, while today, it is in a smaller recovery to the current $ 46,300. Looking at the moving averages, the MA20 drops below the MA200, increasing the bearish pressure on the chart.

Bullish scenario:

• We need new positive consolidation and a price return above $ 48,000 and above the MA200 and MA20 moving averages.
• After that, we approach the previous resistance zone of $ 50,000-52,000.
• In that zone, the additional resistance can be the MA50 moving average.
• If Bitcoin breaks above, then our next target is the following previous consolidation in the $ 59,000-6,000 zone.

Bearish scenario:

• We need continued negative consolidation and a drop in the price to the bottom trend line of around $ 44,000.
• Break below with increased bearish pressure, lowering us further to $ 40,000; we were there for the last time last September.
• And if this zone does not support us, we continue to a larger area of about $ 30,000.

Ethereum chart analysis

The price of Ethereum is still consolidating, and we are now testing the MA20 daily moving average. Since the beginning of the year, the price has been slightly upward, but without major impulses that could strengthen the direction.

Bullish scenario:

• We need continued positive consolidation and price growth above MA20 to the $ 4000 level.
• Then we encounter resistance in the upper trend line, and we need a break above to continue on the bullish side.
• After that, in heightened bullish optimism, we can expect the price of Ethereum to rise to the next resistance zone at $ 4,200.

Bearish scenario:

• We need a negative consolidation that, together with moving averages from the top, would direct the price towards the previous low of $ 3600.
• If the bearish pressure continues, we are looking for the next support at the place of the December minimum at $ 3470.
• Additional support at that level awaits us in the MA200 moving average, which may be an obstacle to a further bearish trend.
• If the price continues to retreat, the next support is $ 3,000, followed by $ 2,650, the October lower low.

Market overview

Kosovo bans bitcoin mining

The Kosovo government has banned the production of cryptocurrencies, Economy Minister Artana Rizvanoli announced on Tuesday (January 4th). TV Kosova reported that the decision was made according to the recommendation of the Technical Committee for Emergency Measures, which deals with the issue of electricity supply in Kosovo during the energy crisis, BETA reports. “The Technical Committee, which was established at the end of last year, held two meetings to identify problems and reach a solution when it comes to the negative effects of the global energy crisis. “Based on the recommendations, I made a decision banning the production of cryptocurrencies on the entire territory of Kosovo,” Rizvanoli said. Kosovo is following a similar path as other countries, which are facing reduced electricity availability and growing hashrits. Kazakhstan, which took over most of the bitcoin hashrate from neighboring China after the country stopped mining, responded to the load on its electricity grid by chasing unregistered miners and then imposing spending restrictions.

Goldman Sachs, Bitcoin should take on a further market share of gold

According to a research report by Goldman Sachs, the rise of bitcoin will cost gold market share. The bank said the market capitalization of the largest cryptocurrency is likely to grow as a “byproduct of wider digital asset adoption, possibly due to Bitcoin-specific scaling solutions.” Looking at the float-adjusted market capitalization of bitcoin, the cryptocurrency accounts for about 20% of the total “storage of value” market, which is currently dominated by gold. Proponents of bitcoin – from Paul Tudor Jones to Anthony Scaramucci – have supported bitcoin as a means of storing value and protecting against gold-like inflation. According to Goldman Sachs, the price of bitcoin could rise to more than $ 100,000 if it occupied 50% of the so-called “store of value” market. The bank added that cases of use outside the value store could serve as a wind in the back of the cryptocurrency.

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